Gold continues to consolidate in a very narrow range, awaiting the outcome of a two-day FOMC meeting.
According to CME Group, about 56.5% of experts surveyed expect the Fed to reduce interest rates by 0.25%. Other experts believe that the regulator will keep the basic parameters of monetary policy unchanged. The Fed forecasts on the basic macroeconomic indicators and changes in interest rates can have a no less powerful effect on trading. Investors also want to understand how the latest developments in Saudi Arabia and news about trade negotiations between the US and China can affect the monetary policy of the Fed.
Gold is very sensitive to changes in the monetary policy of the Fed. It has a strong influence on the dynamics of the dollar and the profitability of American treasuries. Signals of further easing of monetary policy can be a strong driver for further gold growth. A more restrained Fed rhetoric, on the contrary, will increase pressure on the yellow metal.
On the chart, the situation has not changed. Trading is still held in the middle of the horizontal range 1485.00-1523.00. Accordingly, from current levels, the price with equal probability can continue to move both up and down.
Resistance Levels: 1523.00, 1545.00, 1555.00;
Support Levels: 1485.00, 1455.00, 1430.00.
The main scenario is a sideways in the range of 1485.00-1523.00.
An alternative scenario is a breakdown of resistance at 1523.00 and an increase to 1555.00.
Uncertainty remains in the market. There are no trading signals on the chart. Today we recommend that you refrain from trading this instrument.